Understanding Tax Services

Three Reasons Not To Do Your Taxes On Your Own

From software programs to Internet-based programs, there are a number of outlets that make doing your taxes on your own convenient. Unfortunately, convenient doesn't always mean efficient. This is especially the case when it comes to getting your maximum refund or number of deductions you deserve. Before you rush to use one of these do-it-yourself programs for your taxes, make sure you know just what is at risk.

You're On Your Own

Professional tax preparers offer more services than simply submitting your returns to the IRS or state taxation agency. They also serve as an advocate on your behalf, which is important should you be selected for an audit. In the event of an audit, a professional will help guide you on communicating with the IRS and gathering information, playing an active role in the process.

Tax preparers also offer year-round advice that can help you avoid tax mishaps and better plan for the next tax year. Having a professional complete your taxes is like having access to a helping hand whenever you need it.

Missed Deductions

Each year, a countless number of Americans miss out on deductions that they are entitled to. This is especially painful to embrace since tax deductions are basically money in the bank, as they can lower your tax liability, leading to a greater refund or a smaller amount of money owed to the IRS. This typically happens for one of the two main reasons.

First, the taxpayer doesn't understand the deduction, so rather than face a rejected return or an audit – they avoid it altogether. Secondly, they simply aren't aware that the deduction exist. Having extensive knowledge of the tax laws is how either of these scenarios are avoided, which is something all preparers have.

Greater Risk For Error

Since tax preparers have a greater knowledge of tax laws, the likelihood of them making a mistake is greatly reduced. With someone who doesn't have knowledge of the laws, the chance of a mistake is far greater. A mistake can be costly, leading to penalties and in some cases a rejected return. With a professional, these are scenarios you don't have to worry about.

A professional preparer doesn't just understand the law, but they will also reexamine your return before submitting it to ensure it is error free. In the event of an unexpected problem, a preparer will also rectify the problem for you, typically without any additional cost.

About Me

After I started my own business, I realized that it was going to be difficult to keep track of my finances all by myself. I didn't understand how to manage payroll and deal with filing taxes, so I started working with a trained tax professional. He was smart, on the ball, and incredibly nice. He walked me through every aspect of managing my business financials, and it was a huge relief. This blog is all about understanding tax services so that you don't have to stress about the future. After all, as a new business owner, you have enough on your mind.